Demand for property in Malta shows no sign of waning, but the price remains a key sticking point for most would-be buyers, a study released by PwC reveals.
PwC’s Real Estate Survey 2021, released on Friday, was conducted through an online barometer, in which over 450 respondents participated. It was carried out during December 2020 and targeted the total population residing on the Maltese islands.
From a demographic perspective, the largest single age bracket of participants is the 25-34 bracket – at 29 per cent, followed by the 35 – 44 age bracket, at 23 per cent. 40 per cent of participants are in the 44+ age brackets, while eight per cent are aged between 18 and 24.
Most respondents, at 59 per cent, are Maltese residents, while 27 per cent are foreigners residing on the island and 14 per cent live in Gozo.
The results show that 58 per cent of respondents intend on purchasing a property while a further 16 per cent are on the lookout to rent property.
Whether they will be able to, given current property prices, remains to be seen, ass 21 per cent indicated they are looking for a property between 100,000 and 150,000, and another 31 per cent looking for a property between 150,000 and 200,000.
Related to this might be the fact that 58 per cent of respondents indicated they would be purchasing a property alone.
The strongest demand comes from the first-time buyer segment, with 33 per cent of those expressing an intention to purchase property doing so to move out of their parents’ home.
The buy to let market remains strong with 23 per cent of those intending to purchase a property doing so for investment. A further 20 per cent want to upgrade their home, 14 per cent want to purchase a second or holiday home, and the remaining 10 per cent want to downsize their home.
A majority of 43 per cent are looking for an apartment or penthouse with another 25 per cent looking for a maisonette. A significant portion have an eye for tradition, with 17 per cent on the lookout for a terraced house or townhouse and another 11 per cent looking for a House of Character. Meanwhile, 4 per cent intend to purchase a villa, bungalow or farmhouse.
The most popular localities for home buyers are Mosta and Birkirkara, mentioned by five per cent of respondents. The other central localities of Naxxar, Attard and Balzan come in second with four per cent of respondents indicating they want to purchase property there.
Turning to the rental market, St Paul’s Bay is the most popular locality to rent in, with seven per cent indicating they would start their search there. Coming in close second were Sliema and Mosta, at six per cent, while five per cent are looking to rent in Iklin.
In introducing the results, David Valenzia, Territory Senior Partner at PwC Malta, commented that historically the real estate market in Malta has been an important contributor to economic growth, and despite the significant economic disruption brought about by the current COVID-19 pandemic, the industry remains resilient on the back of strong consumer confidence, evidenced by the rate of real estate transactions experienced in the past months.
Boosting heads in beds, does not correlate with an improvement in quality.
The Malta Tourism Authority will provide local councils with information about owners of holiday premises